Question

The statement of cash flows is: Multiple Choice Another name for the statement of financial position. A financial statement that presents information about changes in equity during a period. A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.

Answer 1

Answer: A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.

Explanation:

The Statement of Cashflows is a very important financial statement in a company because it shows the actual amount of cash that the company has.

It does this by reporting cash inflows and outflows which are deducted from the inflows.

The transactions are classified into three(3) groups being: Operating, Investing and Financing activities depending on the nature of the transaction.

Financing activities for instance are for transactions related to Capital such as Equity and debt.